Bitcoin Crashes – MicroStrategy Faces Losing Bet at $330M


So far, so good – For several months, the price of the Bitcoin (BTC) tends to evolve downwards and very recently it even touched 26,000 dollars. Invariably in this kind of situation, eyes turn to the biggest wallets of Bitcoin to try to detect the beginning of anguish. With its nearly 130,000 unitss, Michael Saylor is one of those famous whales. In the course of last week, he wanted to reassure his audience. No he is not worried and yes he will keep his bitcoins. And this, despite financial positions that some observers consider risky.

Microstrategy believes in the future of Bitcoin…

MicroStrategy is an American company that markets computer software. But let’s be clear, it is not for its products that the company is known worldwide. No, it’s mainly for the number of bitcoins it bought and by the name of its CEO: Michael Saylor. This celebrity of the cryptocurrency universe has been evangelizing the whole world for a few years. He has the ear of Wall Street and does not miss an opportunity to declare Urbi and orbi all the good he thinks of Bitcoin.

His company Microstrategythrough subsidiary MacroStrategy – thus acquired 129 218 units. They were purchased in installments from August 2020 for an average price of $30,700. Of course, when the price goes below this figure, the company is faced with to unrealized losses or wasted paper. That is, virtually the position is loser. Of course, as long as no one sells, nothing is lost.

Michael Saylor must justify his positions with each new drop in the price of Bitcoin

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…regardless of economic conditions

The question is regularly put to him by informed observers or by worried journalists. With Bitcoin price at $28,200 like last week, the virtual loss amounts to $330 million. But he shows unfailing optimism. He reassures his audience on Twitter with ever more positive messages. Even when MicroStrategy’s stock price drops 45% in one week.

And when we ask him to explain himself on a margin call potential for $205 million Bitcoin-backed credit – contracted with Silvergate Bank – he answers with the same aplomb. Yes he can cope with it and sends his technical manager, Phong Lee to the media:

“Bitcoin price should be halved to around $21,000 before we have a margin call. »

And Michael Saylor to drive the point home on Twitter:

“We have to maintain 410 million collateral and we have 115,109 BTC left to pledge (…) If the price falls below $3,562, the company could even post other guarantees. »

On Twitter, Michael Saylor distills positive messages to his fans, shareholders and the rest of the crypto community.  No, he is not worried and yes he will keep his bitcoins.  Positive attitude !
Statement from Michael Taylor regarding his Bitcoin-backed loan – Source: Official Twitter

Creditors and journalists therefore did not no worries to have, everything is under control. Whatever the vagaries of the market, the company’s strategy seems clear: to accumulate ever more bitcoins and to position itself as the world leader in the field. While continuing to develop its own computer products of course. Move along, there’s nothing to see.

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